Factor Direct Capital

Direct lender: Equity VS Debt

This is an interesting take on what it means to be a direct lender. To summarize, almost all financial institutions lend money that is not ‘their money,’ it is their customer’s deposits. This is why they are able to offer such attractive terms; they pay .005% APR on deposits and loan it at 5% or [...]

Direct lender: Equity VS Debt is a post from: Factor Direct Capital

Factoring from an Accounting Perspective

It is often said that factoring is an “off the balance sheet” form of financing, but what does that mean? The term has relevance when compared to other forms of financing. More traditional financial tools issue debt in return for financing thus adding debt to the ‘liabilities’ section of the balance sheet. This affects the company’s [...]

Factoring from an Accounting Perspective is a post from: Factor Direct Capital

Informative video on factoring

This video offers an honest explanation about factoring, how it works, and its associated benefits and drawbacks. www.youtube.com/watch?v=cqxMcQ-CckY Informative video on factoring is a post from: Factor Direct Capital

Informative video on factoring is a post from: Factor Direct Capital

Sign Companies benefit from Factoring

Sign fabrication and installation companies get can get a wide range of project sizes. An associate I recently spoke with handles orders from $1000 to $60,000. A common problem for this gentleman’s business is when the projects on the higher end of that range are significantly past due. This puts stress on his business’s cash [...]

Sign Companies benefit from Factoring is a post from: Factor Direct Capital

Control Cash flows

Generally speaking a business owner can only control when they make payments IE their cash out-flows. To some degree they are at the mercy of their debtors for their cash inflow. However there is a way to gain control of both your cash in and out-flows: factoring. Factoring gives the business owners full control of their [...]

Control Cash flows is a post from: Factor Direct Capital

Factoring: Reliable Financing

Recent data shows that SBA lending in Southern California is up about 50% over the same period last year and dollar volume of these loans has nearly doubled. This appears to be good news for small business and supports the notion that the economic stimulus enacted in 2009 reached the right hands. However this good news [...]

Factoring: Reliable Financing is a post from: Factor Direct Capital

Factoring’s Role in the BP oil spill

The oil spill in the Gulf of Mexico has created huge demand for a wide array of resources needed to help in the cleanup process. There is probably no better example than MOP Environmental solutions Inc. They have a patented material used to clean up oil spills. Obviously MOP was going to see a large [...]

Factoring’s Role in the BP oil spill is a post from: Factor Direct Capital

Why Janitorial Companies Utilize Factoring

In an overly simplistic model, janitorial companies really only need two things; supplies and employees. Most of these supplies are durable goods and represent more of an upfront cost. The cost of labor is periodic and represents a large portion of the total cost of operations. This is an important as it relates to cash flows [...]

Why Janitorial Companies Utilize Factoring is a post from: Factor Direct Capital

Factoring: Working Capital for Repossessors

Most Repossessors have the same problem; slow payment. The finance companies that employ recovery agents know better than anyone what delaying payment does to their finances. However, their cash flows are improved at the recovery agent’s expense. In response to this situation, recovery agents have employed a few different strategies. First, and most obvious, is to [...]

Factoring: Working Capital for Repossessors is a post from: Factor Direct Capital

Invoice Factoring: Alternative finance

I read a financing expert’s Blog post about his experience helping a client get funding. It provided a much needed reality check as to how financing availability is not static; rather it’s constantly changing and even financially strong, profitable businesses may find that funds are not as easy to get as they once were. “I recently [...]

Invoice Factoring: Alternative finance is a post from: Factor Direct Capital